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FAQ

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If you have any questions that are not listed below then contact us.

What does ‘MRP’ stand for?

MRP stands for ‘Material Requirements Planning’ and has been being used in manufacturing companies for over 30 years.
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What does MRP do?

MRP is effectively a big calculator. For each order that a manufacturing company wins MRP will suggest purchase orders to be placed (and when to place them) so that all the parts required for the job arrive when they are needed. The MRP system also recommends the start date for each work task required to be undertaken on the job. Knowing the parts requirements and the start dates of required work tasks means that it is possible to highlight parts and labour shortages before they happen so that action can be taken to avoid problems rather than simply reacting to them when they have happened already.

View a simple example of how MRP works.
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How will MRP help Your Manufacturing Company?

MRP systems help manufacturing companies in a number of interrelated ways, the main effects of a well run MRP system are:

  1. Correct parts ordered on time (this will reduce expediting, parts shortages, double handling of work etc.).
  2. Collation / rolling together of parts orders to suppliers (this will reduce the number of orders placed).
  3. Realistic planning of work (this will reduce double handling of work, reduce replanning and increase productivity).
  4. Company data integrated and accessible (this will improve job progress visibility and reduce progress chasing).
  5. ‘Live’ Shopfloor data capture (this will enable up to date job progress information, project costing info to be available during each job and integration of the time and attendance system and the payroll system).

View more detail about these benefits and how they will be measured.
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How long will MRP take to implement?

The core elements of MRP systems should be able to be implemented with 3 to 18 months depending on the complexity of the chosen system and the current level of computerisation within your manfacturing company. Sometimes the use of an external consultant greatly improve the speed of implementation af an MRP system and also the chances of implementation success… if you would like to know more then please contact us.
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Is MRP an IT system?

While MRP needs computers to run it should not be thought of as an IT system. It is a planning and reporting tool that will help to coordinate many aspects of your manufacturing business. The recommendations MRP makes will only be as good as the information that is put into it… and this information that is needed to make MRP run will come, either directly or indirectly, from every employee of the business - so everyone has an important role to play if MRP is to generate realistic plans to help coordinate activity in a profitable way.
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Where can you get MRP systems from?

There are literally hundreds of software houses that have written MRP software solutions for manufacuring companies of all different shapes and sizes. Choosing a system that fits well and that has the lowest cost of implementation, training and subsequent running is not an easy task - if you would like some guidance then contact us for additional help.
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Are the different MRP concepts and terms explained anywhere?

Yes, take a look at the ‘MRP Dictionary of Terms’ page.
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I've got some more questions… how can I get them answered?

Just contact us.
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